How will government find Benami property?

Any asset with an unknown origin and owner is considered to be a Benami asset, whether it is movable or immovable. Property can become Benami when you are unable to identify the source of financing for the building. There are many ways that a government can come to know about Benami property. Let me share with you exactly how will government find Benami property.

How will the government know that property is Benami?

The government will know about Benami property from both domestic and foreign sources. You can get in touch with the investigation officer CBDT by phone or email to complain about Benami property. You can mail to

a copy of the property information you think is Benami. You could request the help of Income Tax Overseas Units (ITOU) serving in Indian embassies abroad.

How will the government identify Benami property?

After the directive and enactment of Benami Transactions (Prohibition) Amendment Act, 2016, the government is attempting to encourage people to report benami properties in return of a substantial reward of up to Rs. 5 crores. Apart from this, the state revenue department keeps a tab on the registration of properties and identifies gaps.

The following steps are taken when the authority learns about a Benami property:

• The relevant officer issues a legal notice when he believes that an individual is a benamidar with regard to a property.

• He can even send a temporary property attachment if needed.

• He can withdraw the temporary attachment if determined that the property is not Benami.

• He has a right to direct the initial attachment or renew the temporary attachment if the local authority is not convinced that the property is not Benami.

• The judicial authority is to hear from those who are concerned and issue a ruling on whether the property is Benami or not. If the property is Benami, the government will determine within a year.

• Authorities can listen to the concerned parties where a judicial order holds property as Benami and then issue a prohibitory order.

• Administrators assume control of Benami property and manage it. All rights and titles in such property must totally transfer to the Central Government free from any encumbrances. According to the Act, the Central Government must name one or more Session Courts as Special Courts to hear cases. It involves crimes that fall under its authority.

I hope you understood how will government find Benami property.